Origin Energy Limited · ASX:ORG
Origin Energy — Citi Climate Change Conference 2007
31 slides from Origin Energy's conference presentation, Jul 25, 2007
Slide 1: ASX announcement cover note for presentation
For personal use only To Company Announcements Office Facsimile 1300 300 021 Company Australian Stock Exchange Limited Date 25 July 2007 From Bill Hundy Pages 31 Subject PRESENTATION Attached for your information is a presentation being made by Ms Karen Moses, Chief Operating Officer Australia to th
Slide 2: Citi Climate Change Conference
For personal use only Citi Climate Change Conference Australia’s carbon reduction challenge and Origin’s approach to carbon opportunities July 2007 1
Slide 3: Growing consensus that a carbon trading regime will be required
There now is a growing consensus by both side of politics that a carbon trading regime will be required… For personal use only The Australian Government’s Climate Change Policy suggests that Australia should: • not wait for the development of a global agreement • set its own long term aspirational g
Slide 4: Emissions trading is the least cost way to achieve a reduction target
Emissions trading is the least cost way to achieve a given reduction target For personal use only • Identify emissions to be covered • Determine cap Socially-determined level of abatement • Issue permits up to that cap Allocate or auction • Require emitters to hold a permit for each unit of emis
Slide 5: Transitional arrangements for existing and trade exposed emitters
Once targets are established it is recognised that existing and trade exposed emitters will need transitional arrangements For personal use only Sectors not covered Coverage 80% of emissions, (agriculture and land use in this example) Mt CO2-e 900 emitters National Emissions Permits to be auctioned
Slide 6: Australia's 2020 emissions reduction task of 100Mt CO2e
For Australia’s emissions to be no greater than 2010 levels in 2020, 100Mt of CO2e will need to be reduced beyond current measures For personal use only 100 MT Sector (2007) % Stationary Energy 50% Transport 15% Fugitive 6% Industrial 6% Agricultural 16% Waste 3% Land Use & Forestry 5% While the con
Slide 7: Abatement costs of $20-30/t CO2e and the role of gas-fired generation
To achieve the greenhouse gas reductions required within the Australian energy industry the costs range from $20-30/t CO2e… For personal use only 100 MT The contribution of renewable energy sources will depend on the size of the carbon reduction challenge and the transitional arrangements for existi
Slide 8: Cost of a carbon impost as share of GDP and Origin exposure
The cost of a carbon impost of $20-40/t CO2e will amount to 1% to 2% of Australian GDP with the cost ultimately being borne by end users… For personal use only 2010 2010 % of Aust. MtCO2e $B Exposure at $B Exposure Emissions $20/t at $40/t Aust.Total Emissions 100% 603 12 24 Aust. Stationary 51% 306
Slide 9: Origin's integrated approach to carbon opportunities
Origin has an integrated approach to carbon opportunities which ensures customers are engaged and aware of the increasing cost profile… For personal use only Understand & 1 measure Calculate direct and indirect emissions across the supply chain Offset 5 If emissions can not be reduced or contained o
Slide 10: Origin's advocacy role in the climate change debate
Over many years Origin has taken an advocacy role in the debate surrounding climate change and a carbon regime… For personal use only Researching CO2 sequestration technologies Carbon Neutral by 2009 We’re planting 100,000 trees to say thank you … as carbon emissions are currently a largely unrecogn
Slide 11: Measuring equity and supply chain greenhouse gas emissions
To understand our impact we measure and report our equity and supply chain greenhouse gas emissions… Production & Purchase For personal use only Transportation Consumption Natural gas, LPG and other products Origin production 2.1 Mt Natural Gas 1.3 Mt and LPG Gas Purchases Transported 10 Mt 1.5 Mt a
Slide 12: Leadership position in green energy sales and carbon responsibility
Origin has clearly established its leadership position in green energy sales and carbon responsibility… For personal use only 400,000 Other AGL 2% Green Power Customers in Australia 10% 350,000 Powerdirect* 3% Market Origin Origin 300,000 27% Country only 5% 250,000 TRU 200,000 7% Integral 150,000 2
Slide 13: Green product leadership
… product leadership GreenEarth Electricity - Retail products from hydro, Green Home - First wind, biomass and solar sources. marketable retail product that As of April 2007, Origin has For personal use only combines green electricity, green GreenEarth Gas - The signed approximately 180,000 gas, and
Slide 14: Generation portfolio in Australia and New Zealand
Origin currently has interests in 870 MW of baseload and peaking generation in Australia and over 2,200 MW through Contact Energy in New Zealand For personal use only Origin’s existing generation portfolio is already well positioned Electricity Generated (Australia) Electricity Generated (Australia
Slide 15: Integrated dual fuel position provides product flexibility
The integrated, dual fuel position Origin has created provides significant product flexibility… For personal use only ToP to ACQ 3,000 250 Buy from Origin 2P Reserves (PJe) Buy from Origin JV partners Buy from 3rd parties Power Generation 2,500 Retail Sales Origin Retail Natural Gas Supplies (PJ) 20
Slide 16: Low emission and renewable generation investment opportunities
Origin holds opportunities to invest in low emission and renewable power generation technologies amounting to around $3 billion in Australia and $2 billion in New Zealand… For personal use only Australia Plants Fuel Scale Indicative gross Status cost Quarantine Power Station Gas 120 MW $0.08 billion
Slide 17: Investing in greenfield generation with low emissions
Our objective is to invest in Greenfield Generation with emissions well below the grid average contributing to a real improvement in the stationary energy sector For personal use only 1.2 1 0.8 0.6 0.4 0.2 0 Pool Intensity (2006) OE Generation Intensity (2006) OE Generation Intensity post Darling Do
Slide 18: Generation growth through Darling Downs CCGT
Origin’s generation capacity will grow through deployment of the high efficiency and low emission Darling Downs CCGT… For personal use only 50 1.20 45 1.00 40 Origin Intensity (t/MWh) 35 Electricity Sold TWh 0.80 30 25 0.60 20 0.40 15 10 0.20 5 - - 05/06 06/07 07/08 Year 08/09 09/10 10/11 Renewable
Slide 19: Investing in solar technologies
Origin is also investing in solar technologies to meet future energy needs, such as… Photo Voltaic For personal use only • $30m investment in a solar photovoltaic SLIVER project • Produced 75 and 150 watt SLIVER modules • Seeking partnership to accelerate the large-scale production of SLIVER technol
Slide 20: The Carbon Reduction Scheme
The Carbon Reduction Scheme brings customers and investment together… For personal use only … ensuring that for every tonne of carbon offset product sold, a tonne of carbon emissions is actually reduced 19 19
Slide 21: Customer Engagement
For personal use only Customer Engagement 20
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Slide 23: For personal use only
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Slide 24: An Integrated Approach to Green
An Integrated Approach to Green How do I make a difference? How do we make a difference? For personal use only my world my workplace my family & friends me my connections my immediate workplace 23 23
Slide 25: An Example. An Integrated Approach to Green
An Example. An Integrated Approach to Green For personal use only My World Buy Local Create a green office Print double sided Eat less red meat my community my workplace Seek out like- Buy Green Energy minded Be aware organisations my family & friends Create business opportunities me my connections
Slide 26: Active in all areas of the strategy across the integrated business
We are active in all areas of the strategy across the integrated business For personal use only 1. Develop detailed greenhouse gas reporting capabilities • Internal GHG reporting for all business units • Forecasted GHG position 2. Transparent disclosure and reporting to stakeholders • Participated i
Slide 27: Active in all areas of the strategy, continued
We are active in all areas of the strategy across the integrated business…cont For personal use only 6. Provide greenhouse gas solutions for our customers • Leading seller of Green Power and Gas • Carbon Reduction Scheme 7. Create value from managing carbon risk • Leading carbon trading team in Aust
Slide 28: Our Purpose
Our Purpose For personal use only We will be the leading, most trusted & admired energy provider in Australia & New Zealand. We will find opportunities across the energy supply chain. We will create more value through realising the benefits of integration. We will be at the forefront of sustainable
Slide 29: For personal use only
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Slide 30: Important Notice
Important Notice For personal use only Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect and these statements speak only as of the date of this presentation. This presentation should not be relied upon as a
Slide 31: For more information
For more information For personal use only For more information on Origin Energy please contact Angus Guthrie Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61-2-8345 5558 Mobile: + 61-4-1786 4255 Alternatively visit our website www.originenergy.com.au and follow the p